If you have hit difficult times in the financial areas of your life, you may be considering bankruptcy. Although there are many options available, the following four options are used in a majority of cases:
1. Do Nothing
If you have few assets and your source of income won’t allow a creditor access to your wages, doing nothing may be your best option. In this case, you are most likely judgement proof meaning that creditors will not be able to get a judgement to garnish your income.
2. Encourage Creditors to Agree to a Settlement Eliminating Your Need to File Bankruptcy
If you only have a creditor or two, but owe them a substantial amount, this may be your best option. Most creditors would rather settle for part of the debt than risk a bankruptcy situation where they would receive nothing.
3. Take Chapter 7 Bankruptcy
This will allow you to start over with a zero balance to your creditors, but this liquidation form of bankruptcy means you could be left with few assets. Your trustee can take all or some of your property and other assets and sell them to pay off your debt. However, exemptions and exceptions may be used to preserve your assets while eliminating your debt.
4. Take Chapter 13 Bankruptcy
This form of bankruptcy allows you to eliminate debt without losing everything that matters to you. It will preserve some of your assets. Usually, you and your attorney will work out a plan to be approved by the Court, to pay back your creditors, for less than the whole amount.
Your Boyle County Bankruptcy Lawyer
George M. McClure, III and Brian D. Bailey have years of experience helping individuals with overwhelming debt. They can help you file the type of bankruptcy that is best suited to your particular situation. If you would like to discuss your unique situation to determine if these, or other options, would be best for you — contact us. We will be happy to discuss your situation and help you to outline and weigh your all of your options.